FXStreet (Córdoba) – The yen reversed its trend across the board and erased all Asian session gains. GBP/JPY bounced to the upside and climbed back above 185.00.
GBP/JPY to test October highs?
The pair bottomed yesterday at 183.87, after the FOMC statement and bounced to the upside, like USD/JPY did. It found resistance at 185.00 and today on Asian hours dropped to 184.08. From there rebounded and recently climbed above 185.00.
It peaked at 185.34, hitting a 2-day low. So far the pair has been able to hold above 185.00 and also on top of the 20-MA in four hour charts. The pound holds a bullish tone and appears to be headed toward 185.50/60, where the immediate key resistance is located. Above there 186.00 and October highs at 186.30 would be exposed.
If the pair falls below 184.70, a static (Oct 12 high) and dynamic (20-MA in 4H) support, the yen could gain momentum. Below, the next potential support levels lie at 184.45 (Oct 22 low) 183.90 (Oct 28 low) and 182.40 (uptrend line from Oct 2014 lows).
(Market News Provided by FXstreet)